Don't Put 20% Down...and Avoid PMI! | 80-10-10 Loan Explained

Описание: How about you DON’T put down 20% on that house but STILL avoid paying monthly PMI? Yes, it’s possible.

First off, let's talk about PMI, or private mortgage insurance. PMI is a type of insurance that protects the lender in case you default on your loan. It's typically required if you have a down payment of less than 20% on your home.

But here’s the thing, it IS possible to avoid that 20% - it's called an 80-10-10 loan. This type of loan allows you to put down 10% as a down payment and then take out two loans to cover the remaining cost of the home - one for 80% of the purchase price and the other for 10%. This way, you can avoid PMI while still putting down less than 20% as a down payment.

It's important to note that 80-10-10 loans can be more expensive in the long run, depending on a variety of factors, so make sure you carefully weigh the pros and cons before deciding if this method is right for you.

Shoot me a message if you’d like to learn more about the 80-10-10 loan strategy and see if it’s right for you!

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